Permanently Reviving the Temporary Insider

Journal of Corporation Law, Vol. 36, p. 343, Winter 2011

Posted: 13 May 2011

See all articles by Robert A. Prentice

Robert A. Prentice

University of Texas at Austin - McCombs School of Business

Date Written: May 12, 2011

Abstract

In SEC v. Dirks, the Supreme Court spelled out a theory of insider trading liability for what have been known variously as "temporary Insiders," "constructive insiders," and/or "quasi-insiders." Without being clearly rejected by courts or strongly criticized by commentators, this temporary insider theory has largely fallen into desuetude. This article makes the theoretical and practical case for reviving the temporary insider category of insider trading liablity.

Keywords: insider trading, securities fraud

JEL Classification: K22, K42

Suggested Citation

Prentice, Robert A., Permanently Reviving the Temporary Insider (May 12, 2011). Journal of Corporation Law, Vol. 36, p. 343, Winter 2011, Available at SSRN: https://ssrn.com/abstract=1839464

Robert A. Prentice (Contact Author)

University of Texas at Austin - McCombs School of Business ( email )

Austin, TX 78712
United States

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